LOWELL, MA— In a move that marks continued momentum in revitalizing Lowell’s urban core, Hunneman has closed financing for Isobel Lofts, a 26-unit multifamily redevelopment at 78 Middlesex Street.
The project is led by Nine Zero Two Development, a boutique firm known for its focus on historically sensitive restorations and strategic investments in emerging markets.
The redevelopment will breathe new life into a long-vacant historic Odd Fellows building, transforming it into a vibrant residential community featuring studio, one-, and two-bedroom apartments. The property is slated for completion in Fall 2025, with leasing expected to begin in September.
Complex Financing, Strategic Partnerships
The project’s financing package combines public and private funding sources, showcasing a collaborative approach to redevelopment in Massachusetts’ Gateway Cities. Support came from the state’s Housing Development Incentive Program (HDIP), which provides tax credits to spur market-rate housing in cities like Lowell. Tax Incentive Finance arranged the HDIP credits, while Cahoon Capital and Lowell Development and Financial Corporation (LDFC) served as tax credit lenders. Lowell Five Bank provided the senior construction loan.
“This was an incredibly complex financing package, requiring the involvement of a number of organizations and active participation by our client,” said Andrew Kaeyer, Executive Vice President at Hunneman. “Through the support of the HDIP funds for Gateway Cities, Isobel Lofts will bring much-needed housing to Lowell in a challenging economic climate.”
Restoring the Past, Building for the Future
Designed to complement the city’s historic brick architecture, Isobel Lofts will feature 13-foot-high ceilings, modern finishes, and an attractive suite of amenities, including a fitness center, swimming pool, bike storage, and a private open-air courtyard. The development is strategically located near three Lowell Regional Transit Authority (LRTA) bus lines and the Lowell MBTA Commuter Rail station, offering convenient transit options for future residents.
“The City of Lowell has been wonderful to work with throughout this process,” said Justin MacFarlane, Principal of Nine Zero Two Development. “Their enthusiasm toward supporting the redevelopment of older structures speaks to the importance of projects like Isobel Lofts, especially as the state faces a significant housing shortage.”
The redevelopment was made possible in part due to the City’s proactive efforts to repurpose underutilized properties. Nine Zero Two Development initially became involved with 78 Middlesex Street following a successful neighboring project at 160 Middlesex Street, also completed in collaboration with the City.
A Catalyst for Downtown Lowell
The Isobel Lofts project represents another step in Lowell’s broader strategy to revitalize downtown, increase housing inventory, and attract new residents to the city’s growing cultural and economic center. The surrounding area offers abundant retail and dining options, enhancing its appeal to future tenants seeking both convenience and community.
Hunneman’s Investment Sales and Capital Markets team, led by Andrew Kaeyer, represented Nine Zero Two Development in arranging the financing.
